New York-based M.Y. Safra Bank (MYSB) began offering a limited number of Online Promo CDs more than five years ago. MYSB’s internet banking debut led to the MYSB Direct Online CDs, which have been part of the product line for the last few years. MYSB recently raised the rates on Direct Online CDs, with the 60-month (4.90% APY) offering the most competitive rate. (The 60-month CD is currently the rate leader for 5-year direct bank CDs.) A minimum of $500 of new money is required to open a Direct Online CD. New money is defined simply as “funds from another institution."
|4.70%||$500||-||M.Y. Safra Bank||60 Month MYSB Direct Online CD - New Money|
Early Withdrawal Penalty
The MYSB website does not include a Truth-in-Savings (TIS) disclosure for CDs. More than a year ago, a DA reader sent me an excerpt from the MYSB TIS and CSR confirmed that the following Early Withdrawal Penalty (EWP) is still in effect.
EARLY WITHDRAWAL PROVISIONS. We will impose a penalty if you withdraw any or all of the deposited funds before the maturity date. The fee imposed will equal 90 days of interest. If interest earned during the term is greater than 3 months, penalty will equal all interest earned.
At first glance, it appears the EWP is 90 days, which would be a very mild penalty for a 5-year CD. But a closer read reveals the EWP is actually a loss of all earned interest, which is extremely harsh. Partial withdrawals are allowed, but if a withdrawal is made within 90 days of account opening, the principal will be reduced.
13-Month No-Penalty CD
When I remarked at the severity of the EWP, CSR mentioned that MYSB has a new 13-month No-Penalty CD. While the 4.85% APY isn’t that competitive, the 13-month No-Penalty CD feature three penalty-free withdrawals throughout the term.
Availability and Account Opening
Headquartered in New York City, M.Y. Safra Bank was established when T. Rowe Price Group Inc., sold its Baltimore-based T. Rowe Price Savings Bank in 2013 to New York financier and banker, Jacob E. Safra. The sale of the Bank was prompted by new regulations affecting the banking industry.
Funding and Other Details
The following information is from a conversation with CSR.
- Funding – ACH or wire transfer.
- Ownership – Must be opened as an individual account, but a joint owned can be added after account opening.
- Interest – Compounded/credited monthly; can be paid out via ACH or cashier’s check to address on file.
- Maturing Funds – ACH, wire ($20 fee), cashier’s check to the address on file, or internal transfer to a M.Y. Safra savings or checking account.
- Beneficiaries – Unlimited and percentages can be assigned, Social Security numbers are not required.
- Grace Period –7 calendar days before automatic renewal.
- Credit Check – ChexSystems and OFAC.
M.Y. Safra Bank, has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 0.16% (excellent), based on June 30, 2023 data. In the past year, MYSB’s total non-brokered deposits have decreased by -$10 million, a below average annual growth rate of -3.87%. Please refer to our financial overview of M.Y. Safra Bank (FDIC Certificate # 35154) for more details.
Currently the 84the largest bank headquartered in New York, M.Y. Safra Bank has assets in excess of $362 million. Although MYSB opened its doors in 2013, the Safra family has been associated with banking for far longer.
For centuries, the Safra name, meaning gold, has been synonymous with sustained trust and reliability. The Safra family first rose to prominence while financing 19th century trade to Asia, Africa, the Americas, and Europe. The patriarch of the contemporary Safra dynasty, Jacob E. Safra, began working at age 13 under the tutelage of his uncle at Safra Frères & Cie., headquartered in Aleppo, Syria. In 1920, he established his own bank in Beirut, Jacob Safra Maison de Banque, marking the first step in extending the Safra legacy of prudent banking practices to the four corners of the world.
Jacob E. Safra’s son, esteemed banker and financier Edmond J. Safra, advanced his family’s legacy by founding a world renowned bank in Switzerland before arriving in New York in the early 1960s to establish what became Republic National Bank. Within twenty years, Republic grew to be one of America’s largest banks. Having successfully built a global network of banking excellence, he championed the Safra family principles of discretion and service in every institution that he built.
Although the bank's name looks like “My Safra Bank”, it actually refers to Moise Y. Safra, Jacob E. Safra’s second son, a legendary Brazilian banker.
How the 60-month MYSB Direct Online CD Compares
When compared to similar length-of-term CDs tracked by DepositAccounts.com that are available nationally and have minimum deposit requirements of $10k or less, two credit unions have higher rates than currently offered on the M.Y. Safra Bank 60-month MYSB Direct Online CD. The following tables compares the 60-month MYSB Direct Online CD to the two highest-rate CDs from other credit unions and the two highest-rate CDs from banks.
The above information and rates are accurate as of 10/28/2023.
To look for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.